Following what were said to be extensive preliminary discussions, General Motors and Honda have signed a memorandum of understanding toward establishing a North American automotive alliance. Its scope includes a range of vehicles to be sold under each company’s brands, as well as cooperation in purchasing, research and development, and connected services.
The partners intend to collaborate on a variety of segments in North America, intending to share common vehicle platforms, including both electrified and internal combustion propulsion systems. Planning discussions will begin immediately, with engineering work beginning in early 2021.
The alliance builds on an agreement signed in April to jointly develop two all-new electric vehicles for Honda based on GM’s flexible global EV platform powered by Ultium batteries. They hope to leverage that platform/battery strategy for better future-mobility competitiveness.
In March, GM said that the Ultium batteries are unique because the large-format, pouch-style cells can be stacked vertically or horizontally inside their packs, allowing engineers to optimize battery energy storage and layout for any vehicle design. Energy options range from 50 to 200 kW·h, with an estimated range up to 400 mi (645 km) or more on a full charge. Its in-house motors will support front-wheel drive, rear-wheel drive, all-wheel drive, and performance all-wheel drive applications. Ultium-powered EVs are designed for Level 2 and DC fast charging. Most will have 400-V battery packs and up to 200-kW fast-charging capability while the truck platform will have 800-V battery packs and 350-kW fast-charging capability.
GM believes its flexible, modular approach to EV development will drive significant economies of scale and create new revenue opportunities. Its joint venture with LG Chem will drive battery cell costs below $100/kW·h.
The cells use a proprietary low-cobalt, high-nickel chemistry and ongoing technological and manufacturing breakthroughs are expected drive costs even lower. The large-format pouch cells require less wiring and plumbing than cylindrical round cells. The battery management system is built into the pack, which eliminates 80% of the battery pack’s wiring compared to the Chevrolet Bolt EV.
The new alliance continues the relationship, which began more than two decades ago, that includes recent collaboration between the companies on fuel cells, batteries, and the Cruise Origin shared autonomous vehicle.
“This alliance will help both companies accelerate investment in future mobility innovation by freeing up additional resources. Given our strong track record of collaboration, the companies would realize significant synergies in the development of today’s vehicle portfolio,” said Mark Reuss, President of General Motors.
“Through this new alliance with GM, we can achieve substantial cost efficiencies in North America that will enable us to invest in future mobility technology, while maintaining our own distinct and competitive product offerings,” added Seiji Kuraishi, Executive Vice President of Honda Motor Co., Ltd.
Specifically, the alliance would generate substantial cost efficiencies from shared vehicle platforms and propulsion systems, joint purchasing, and potential manufacturing efficiencies—to enable both companies to make greater investments in advanced and next-generation technologies. The two companies also plan to share R&D and engineering costs for select future co-developed vehicles and propulsion platforms.
They believe that introducing advanced technology is imperative, given shifting consumer and regulatory requirements. To address this challenge efficiently, the alliance would explore combining the R&D efforts between the two companies related to advanced technology areas, including electrical architecture, advanced driver-assistance systems, infotainment, connectivity, and vehicle-to-everything communication.
In April, the companies announced that Honda will incorporate GM’s OnStar services into the two all-new electric vehicles for Honda based on GM’s global EV platform, integrating them with HondaLink. The two companies will explore further co-development opportunities for future connected services, including GM’s OnStar and infotainment.
